The group blames the weakening economic outlook and growing reliance on competing sources.
Demand for OPEC's crude will decline until 2016 because of the weakening economic outlook and growing reliance on competing sources such as U.S. shale oil deposits and natural gas liquids.
Global need for fuel from the Organization of Petroleum Exporting Countries will shrink to 29.7 million barrels a day in 2016, 1.4 million less than this year, the group says in its annual World Oil Outlook.
The estimate for 2015 is 1.6 million barrels lower than that forecast in last year's report. OPEC predicts it may have more than 5 million barrels of daily spare production capacity as early as next year. World markets are "very well supplied," the group's secretary-general says.
"The economic recovery remains fragile, the risks stemming from the eurozone debt crisis appear to be heightening, economic growth in major developing countries is facing strong headwinds," the group's Vienna, Austria-based research department, led by Hasan Qabazard, says. "Shale oil represents a large change to the supply picture."
Excerpted from an article from the Detroit Free Press. Click here to read the full story.